GAP Fund Program

Growth Acceleration Program

The CIT GAP Fund makes seed-stage equity investments in Virginia-based technology, green technology, and life science companies with a high growth potential. The GAP Funds are overseen by CIT and private sector experts – the Investment Advisory Board – who conduct thorough due diligence on the companies before making investments.

CIT , Financial Assistance

Background

 

Loudoun_County_citThe GAP Fund Program was established in 2004 to meet the early stage capital demands challenging the Commonwealth’s most promising science and technology-based start-ups whose funding requirements could not be met by traditional financing means. The GAP Fund Program places convertible debt and equity investments in Virginia’s high-growth potential science and technology-based companies. As a technology investor, the GAP Fund Program invests in companies whose technology provides a significant blocking factor against competition. The GAP Fund Program typically deploys $200K in two tranches in early stage transactions with limited follow-on investment capacity, realizing substantial leverage from concurrent and downstream private angel and venture investors. CIT GAP Funds utilizes a two-level approach to investment actions with all deal sourcing and initial due diligence performed by CIT’s internal Investment Team and final investment decisions made by leading regional venture capitalists, angel investors and entrepreneurs on the GAP Fund Program’s Investment Advisory Board (IAB).   Post-close, CIT plays an active role in portfolio company development as a board of observer and advisor and maintains a rigorous portfolio reporting process, rolling up key accomplishments and risk areas of all companies on a quarterly basis.   The goal of CIT GAP Funds is to attract third party venture and angel capital into the Commonwealth.

 

Program Evolution

 

When CIT GAP Funds was first created in 2004 it invested only with convertible notes. Since then CIT GAP Funds has added a valuation cap to its convertible note and has added an equity option. CIT has also strengthened its claw-back language.

 

Success Stories

 

Invincea – In December 2013, Invincea raised a $16M Series C equity round led by Aeria Capital and Dell Ventures.

Distil – In June 2015, Distil raised a $21M Series B equity round led by Bessemer Venture Partners

Zoomdata – In October 2014, Zoomdata raised a $17M equity round led by Accel Partners

Contact:

Tom Weithman, VP and Managing Director, CIT